A rise in the yen, which often draws safe-haven buying in times of uncertainty, is bad for Japanese exporters because it shrinks the value of their repatriated profits.

But although US equities on Wednesday managed to close only slightly down even after Trump's warning that "fire and fury" would rain on North Korea, on Thursday the chickens came home to roost on Wall Street.

With Japanese markets closed for a public holiday, Hong Kong led the downward charge in Asia-Pacific as the Hang Seng lost more than two percent.

Many world stock markets have hit record or multiyear highs in recent weeks, leaving them vulnerable to a sell-off, and the tensions over North Korea proved to be the trigger. The data suggested little sign of inflationary pressure within the economy.